Hr not issuing a document

HR can issue such letter stating that so and so......... is working in our company.  The company is liable to clear the debt of the employee.

Some HR officials  shy away from giving such letters due to unfounded fears of themselves and/or their Company being implicated. As long as they provide correct information as to:

1. Correct name
2. Designation
3. How long employed with them
4. Permanent or Temporary
5. Latest Salary details

adding a clause in the letter that the letter in no way can be taken as an undertaking to guarantee or ensure repayment of loan in any manner whatsoever, the Company or the Official shall be safe from any legal action by bank due to default at a later date. Such letter needs to be addressed to the specific bank branch based on Employee's written request wherein employee needs to mention the specific reason for such a letter from the Employer.

Let your Uncle further escalate the matter beyond the HR to obtain the letter through the intervention of higher officials.

absolutely i agreed with experts reply. 

The Madurai Bench of Madras High Court has rejected plea of the TN Industrial Co-op Bank Ltd, Madurai seeking direction to respondents – Southern Railway and Madurai Corporation — to deduct loan instalments from salary of defaulting employees, who were liable to repay loans availed from petitioner-bank.

Dismissing writ petitions from the bank pleading that employees of Southern Railway and Madurai Corporation had availed themselves of personal loan from them, a registered society, and they had failed to repay same, Mr Justice K. Chandru held that present petitions were “exercise in futility”. Though the bank had said they had agreement with the respondents to deduct loan amount from their salary, it was stated by the Senior Divisional Personnel Officer, Southern Railway, Madurai, that they did not authorise any of their employees to avail themselves of loans from banks and other agencies without prior sanction of the railway administration.

U/s 48 of the TN Co-op Societies Act, 1983, deduction from wages, salary, etc was permissible on certain grounds. Such deduction could be made only when there was agreement between the employer and the society and a requisition was made in pursuance of agreement, the judge said.

The Railways had stated that their authorised officers had not signed and the Railways did not bind themselves for granting such deduction.

The judge wondered whether under the Societies Act, the petitioner-bank did not have wherewithal to seek for arbitration u/s 90 and after getting award from the arbitrator to make use of execution machinery u/s 167 to recover amounts due to them.

The writ petitions of the Society (bank) were misconceived and were not maintainable.

Therefore you cannot force the HR of the company to furnish the desired document because the company is not a party to the loan neither the company has recommended the loan nor had requested the bank to advance the loan amount to its employee.

If at all the bank wants the company to recover it from the employee's salary then as per the above stated judgment the bank should have entered into a tripartite agreement with the  employee and the employer in this regard. 

The employer/company cannot be forced either by the employee or the bank to bind themselves in this regard to deduct  loan amount from the employee's salary in case of default.